ISLAMABAD, July 31 (Alliance News): Inflation is expected to remain elevated in the short term during the current fiscal year, according to the Finance Ministry’s latest monthly economic update.
The report said average inflation stood at 7.1 percent during the last fiscal year, compared with 4.5 percent in fiscal year 2024-25, while the inflation rate increased to 11.1 percent in June.
According to the report, inflation is expected to remain between 9 and 10 percent in July, the first month of the current fiscal year, while the external sector is projected to remain stable.
However, the Finance Ministry warned that renewed geopolitical tensions in the Middle East could pose downside risks to the inflation outlook and external sector.
The report said the process of economic recovery was continuing, while overall macroeconomic stability was expected to remain intact.
Pakistan’s remittances reached $41.6 billion during the last fiscal year, according to the report, while revenue collection also recorded growth.
The ministry said exports also showed improvement during the period, reflecting continued recovery in economic activity.
